Which one of the following statement is correct? A. If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0. B. If the market risk premium increases by 1%, then the required return on all stocks will rise by 1%. C. The effect of a change in the market risk premium depends on the level of the risk- free rate. D. If a company's beta doubles, then its required rate of return will also double. E. If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount, then the required rate of return on an average stock (i.e. beta-1) will remain unchanged, but required returns on stocks with betas less than 1.0 will rise.